Second charge
Second charge bridging
Raising capital behind an existing mortgage, without disturbing a rate you would not get again today.
What it is
A second charge exists to protect the first.
Brief: explain charge priority, why a second charge is priced higher, and the two situations that justify it — a cheap first charge worth keeping, and an early repayment charge that outweighs the extra cost.
[DRAFT] Explain what a second charge is and how the security ranks on a sale or default.
[DRAFT] Cover the deed of consent or postponement from the first charge lender, and why that consent is the most common cause of delay.
[DRAFT] Work through the arithmetic of keeping a low fixed rate versus refinancing the whole balance, including early repayment charges.
Use cases
When a second charge is the better route.
Brief: use situations from real cases.
Protecting a legacy rate
[DRAFT] A first-charge fix well below current pricing that would be lost on a full refinance.
Avoiding an early repayment charge
[DRAFT] Where the ERC on the first charge exceeds the cost of the second.
Deposit for the next purchase
[DRAFT] Releasing equity quickly to secure another property.
Funding works on an owned asset
[DRAFT] Raising the refurbishment budget without touching the term loan.
Short-term business cashflow
[DRAFT] Bridging a working capital gap against property equity, with a defined exit.
Tax or partner buyout deadlines
[DRAFT] Where a fixed date drives the requirement.
Indicative terms
What second charge lenders look for.
Brief: verify rates and combined LTV limits — these vary widely by lender and asset type.
| Measure | Typical range |
|---|---|
| Monthly interest rate | [DRAFT] 0.85% – 1.5% |
| Maximum combined LTV | [DRAFT] Up to 70% – 75% |
| Term length | [DRAFT] 3 – 18 months |
| First charge consent | [DRAFT] Required — deed of postponement |
| Minimum loan size | [DRAFT] £75,000 |
| Time to completion | [DRAFT] 2 – 4 weeks, consent permitting |
Combined leverage across both charges is the number that decides the deal.
Go deeper
A variant of standard bridging.
[DRAFT] Short paragraph explaining that pricing follows bridging conventions with a premium for charge position, and linking to the bridging page and calculator.
Questions
The things people ask first.
Sitting on equity and a rate worth keeping?
[DRAFT] One line asking for the property value, the outstanding balance and the amount needed.
Same working day response.